Buybacks begin to soften, declined 3.1% YoY—Janus Henderson
Global dividends rose to US$ 424.5bn in the first quarter of 2026, up 10.1% year-on-year, according to the inaugural edition of the Janus Henderson Global Dividend and Buyback Index.
Dividend growth was broad-based, with meaningful increases across North America, Europe, Japan and the UK, despite a noisy macroeconomic backdrop.
The report also found the Middle East distributed US$ 29.2bn in dividends during the quarter, with underlying payouts rising 4.0% year-on-year.
The new index expands Janus Henderson’s long-running dividend research to include share buybacks, providing a more complete picture of how the world’s largest companies return capital to shareholders. It also introduces dedicated analysis of Middle East markets.
Global buybacks ahead of dividend payments
In Q1, global buybacks reached US$ 425.7bn, marginally ahead of dividend payments, but fell 3.1% from the same period the previous year, suggesting companies are becoming more selective in their approach to shareholder returns.
The first quarter showed a divergence between dividends and buybacks. Dividend payments accelerated, supported by resilient corporate earnings, while buybacks softened against a backdrop of higher-for-longer interest rates, trade uncertainty, and geopolitical risk.
Middle East dividend growth reflects underlying resilience
The Middle East distributed US$ 29.2bn in dividends during the first quarter, with underlying dividend growth of 4.0% year-on-year. Headline dividends were 5.0% lower, primarily because of calendar effects rather than weaker corporate distributions.
Saudi Arabia was the region’s largest dividend payer, distributing an estimated US$ 24.5bn and accounting for almost 84% of Middle East dividends. Qatar ranked second, distributing $2.0bn in dividends. The UAE paid US$ 1.7bn in dividends during the quarter. While headline UAE payouts were lower than a year earlier, this was due to the timing of Dubai Islamic Bank’s dividend payment rather than weaker underlying dividend activity.
“Buybacks add another layer to the story. The absolute level of repurchases remains substantial, broadly in line with dividends in Q1, but the modest year-on-year decline also shows why they should be treated differently. Dividends are generally long-term board decisions based on sustainability, while buybacks are more discretionary and cyclical in nature. In that sense, dividends remain the stronger signal of confidence, while buybacks act as a more flexible shock absorber,” explained Jane Shoemake, Client Portfolio Manager, Global Equity Income Team, Janus Henderson.
